University:
California State University, Northridge
Course:
ECON 101 | Economics for Everyday Life
Academic year:

2021
Views:

480

Pages:

2
Author:

Jithin J. I.

Introduction To Financial Matters Administrative Definition: Administrative financial matters involve the application of monetary theory to administrative practice and decision-making, using financial tools and techniques to address administrative problems. Coordination of Monetary Theory and Business Practice: It aims to align financial principles with business objectives, enabling autonomous decision-making and future planning. Microfinancial and Macrofinancial Analysis 2.1 Microfinancial Elements Small-Scale Monetary Methodology: Examines individual financial behavior, such as producers and consumers. Large-Scale Financial Methodology: Focuses on the overall behavior of the economy, including public finance and exchange cycles. Relevance to Administrative Matters: We primarily decision-making processes company level, making it financial approach. Financial evaluate at the a micro 2.2 Normative Methodology Positive vs. Normative Approach: Positive methodology describes the situation as it is, while normative methodology describes the situation as it should be. Administrative Financial Matters: Adopts a normative approach, advocating specific recommendations rather than mere descriptions. 2.3 Subset of Financial Science Administrative Financial Matters as a Subset: It is a part of the broader field of financial science, which covers various topics like government finance, international trade, banking, and more. Focus of Administrative Financial Matters: It centers on decisionmaking within the administrative framework of a company. 2.4 Importance of Understanding Larger Financial Issues Consideration of External Factors: Companies must consider external factors such as competition, government policies, global trends, risks, and uncertainties when making decisions. Impact on Administrative Market Analysts: Ignoring larger financial issues can lead to suboptimal decisions. Scope and Objectives Administrative Financial Matters of Strategic Resource Allocation: Administrative financial affairs aim to strategically allocate resources for optimal or acceptable results. Focus on Administrative and Financial Aspects: The analysis focuses on administrative decisions at the company level, considering both the financial and operational perspectives. Cost and Revenue Perspective: The company seeks to maximize the benefits between the cost and revenue sides. Market Considerations: Market dynamics, competitors, demand forecasting, and cost-yield relationships are critical aspects in decision-making. Adapting to Change: Companies may need to adjust strategies and objectives based on financial outcomes and market conditions. Summary Administrative Financial Matters bridges the gap between monetary theory and business practice, offering insights and recommendations for effective decision-making within the administrative framework of a company. By understanding both micro financial and macro financial elements, considering normative methodologies, and acknowledging the broader financial context, administrators can successfully navigate financial challenges and influence the company's future positively.